How To Start Investing In The UAE’s Stock Market

Investing in the stock market is one of the most effective ways to grow your money. When you invest in stocks, you can either buy shares of an existing company or start your own company and sell shares to investors. The UAE’s stock exchange has been around for a few years now and offers plenty of opportunities for those looking to invest.

The UAE is a fast-growing economy and the demand for capital has increased significantly in recent years. To meet this growing demand, the Dubai Financial Market was officially launched on March 3, 2000, as a fully licensed and regulated exchange.

In 2007, the Abu Dhabi Securities Exchange (ADX) was established as a subsidiary of the Abu Dhabi Global Market, to serve as a complementary market for capital raisings by companies based in Abu Dhabi. In 2015, ADX joined DFM as its second trading platform. The two exchanges now operate separately under one regulatory umbrella – Capital Markets Regulatory Authority.

How does the stock market work?

The stock market can be intimidating and complex, but it doesn’t have to be. Below is an easy explanation of how the stock market works, in plain language. 

There are essentially two sides of the stock market: buyers and sellers. The buyers want to pay as little as possible for a company’s stocks, while the sellers want to get paid as much as possible. A group of traders called “stockbrokers” help match up these two groups by charging a fee for their services (the fee is usually based on a percentage of the amount they make for you).

How to buy and sell stocks in the UAE?

As an individual investor, you must open a trading account with a broker registered with the Dubai Financial Market (DFM) or Abu Dhabi Securities Exchange (ADX). You can obtain an Investor Number to trade on DFM and ADX directly from the Investor Services Desk at the exchanges and for more details visit the government investment website for up-to-date requirement information (https://www.dfm.ae/investors/how-to-trade).

Eligibility criteria for an investor to buy stocks in UAE:

• Non-Residents are also eligible
• Applicants must have a valid passport
• Applicants must have an Investor Number (NIN)
• Applicants must have a trading account
• Minors below 21 years old are eligible with the guardian’s signature on the applications

Best Online Trading Platforms in UAE & Dubai

Online trading is a great way to earn some extra money. Whether you’re looking to buy and sell stocks or simply trade forex, online trading platforms offer amazing opportunities for traders of all levels.

The first thing you need to do is choose the right platform for your needs and level of expertise. There are many different features that online trading platforms might offer, from charting tools to advanced order options. Some platforms can be more user-friendly than others as well, depending on how much time you want to spend learning the ropes.

According to Business24, the most popular online trading platforms in the UAE are:

1. IQ Option – Best for Binary Options Trading and CFD’s
2. AVAtrade – Best Overall Broker
3. eToro – Best for Social and Copy Trading
4. Pepperstone – Best for Beginner Traders
5. Saxo Bank– Best for Advanced Traders
6. XM – Best for forex trading

Conclusion

The UAE’s stock market is growing at a rapid pace, so there are plenty of opportunities for investors. When investing in the market, it is important to do thorough research and make sure you understand how the investment will be affected by external factors such as economic growth and inflation. If you would like more information about investing in the UAE’s stock market or any other opportunities available in Dubai, contact us today.